Amaravati: Andhra Pradesh government has said it would take a decision on making Amaravati the state's capital as the World Bank dropped funding of a loan of $300 million for Amaravati capital city development project.

Discussions are going on over the development of Amaravati capital city and a decision will be announced soon, said state minister for municipal affairs Botsa Satyanarayana.

He added that the funds needed to the Andhra capital is much higher in comparison with other towns as they need to construct canals and dams to avoid floods in the city.

Also read: Andhra Pradesh floods: Over 11,000 people from Krishna, Guntur districts moved to relief camps

According to the state disaster management authority, a total of 4,352 houses marooned in River Krishna, Guntur districts in Andhra Pradesh. In the two districts, 24 villages were completely inundated by the floods. In all 11,553 people in Krishna and Guntur districts have been moved to 56 relief camps where food and drinking water are being provided.

Andhra Pradesh chief minister YS Jagan Mohan Reddy had given in-principle approval to stop the Amaravati capital project after coming to power. It is reported that the chief minister had cited that their preference is to clear the ongoing works. The Telugu Desam Party (TDP) has been opposing the decision, according to reports.

The state government also said that they have more priorities than capital development in the state. According to reports, thousands of farmers had given over 34,000 acres of land for the capital project. Real estate sector was also affected by the decision to stop the capital city project.